<So now can there be any doubt that the holiday shopping data will set all time records for spending ? Millions of people have new homes and will spend on furnishings and appliances.>
Of course no doubt. Why even wait for the holidays.
Looks like an early start to the 'give me' season.
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WASHINGTON, Nov 7 (Reuters) - U.S. consumers piled on debt in September, taking on loans for cars and other items at a rapid pace, the Federal Reserve said on Friday.
The Fed said consumer credit outstanding rose a larger-than-expected $15.1 billion to $1.972 trillion in September, its biggest gain since January. It marked an acceleration from August's revised $8.8 billion gain and was well ahead of Wall Street expectations of a $5.9 billion increase.
By far, most of the gain came from so-called non-revolving credit -- closed-end loans for cars, boats, mobile homes and tuition expenses. That category saw a $12.1 billion rise in debt outstanding.
Revolving debt, which tracks credit and charge card usage, posted a $3.0 billion rise in September, almost double the $1.7 billion advance seen in August.
The Fed data helps explain the surge in consumer spending that pushed U.S. economic growth to an eye-popping 7.2 percent annual rate in the third quarter.
Economists doubt that pace will be sustained ahead, in part because of household debt burdens. In a Sept. 26 speech, Fed Chairman Alan Greenspan noted household debt had risen "appreciably in recent years" but added it was being "serviced adequately."
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PS: Being "serviced adequately" at zero% for 12 months is going to turn into deep deep trouble when the FEeD Chairman raises rates and buries these households that he has enticed into the debt hole. |
